GREAT BASIN GOLD REPAYS SENIOR SECURED NOTES
March 16 2011 - 8:30AM
PR Newswire (Canada)
VANCOUVER, March 16 /CNW/ -- ACKNOWLEDGES WALTER SEGSWORTH'S PAST
SERVICE VANCOUVER, March 16 /CNW/ - Great Basin Gold Ltd.
("Great Basin Gold" or the "Company"), (TSX: GBG) (NYSE Amex: GBG)
(JSE: GBG) today announced that it has repaid the 2008 Senior
Secured Notes ("Notes") with the proceeds of the previously
announced Term Loan Facility from Credit Suisse AG. The facility
was increased from US$60 million to US$70 million to maximize
leverage from this low-cost facility. The facility has been fully
drawn down and has a term of 4 years, is repayable in quarterly
installments commencing September 2011, and bears interest at a
premium of 3.75% over the 3 month US LIBOR rate. It is secured by
the Company's Nevada assets. As part of the facility, the Company
executed a zero-cost-collar hedging program, consisting of a total
of 117,500 ounces of gold spread over a 4 year term commencing in
January 2012. The call option price was fixed at US$1,930 per ounce
with the put option at US$1,050 per ounce and as long as gold
trades within these prices there is no cash cost to the hedge. The
Company also announces that it has now filed its consolidated
annual audited financial statements and related Management's
Discussion and Analysis for the year ended December 31, 2010 on
SEDAR.com and on the Company's website. The audited financial
results are identical to the preliminary results released on
February 24, 2011. In other corporate news, Mr. Walter Segsworth
has resigned as a director of the Company. The Board is in the
process of nominating additional directors for the June 2011
shareholders meeting which will include two women candidates with
solid financial and mining backgrounds. The proposed candidates
will bring a wealth of experience and fresh views to the Board and
will help ensure a better gender balance on it. Ronald Thiessen,
Chairman, stated "On behalf of the Board, I would like to
personally thank Walter for his several years of hard work and
thoughtful insight into development and operational issues. We wish
him all the best in his other endeavours." Ferdi Dippenaar, CEO,
commented "We were very pleased with the speed and efficiency with
which Credit Suisse was able to finalize the loan and then upsize
it. This low-cost and flexible facility is a significant
improvement in our cost of capital over the burden of the 2008
Senior Secured Notes." Great Basin Gold is a mining company engaged
in the exploration and development of gold properties. The Company
is currently focused on its two emerging mines in the world's two
richest gold regions. The Hollister gold mine is located on the
Carlin Trend in Nevada, USA and the Burnstone gold mine is located
in the Witwatersrand goldfield of South Africa. No regulatory
authority has approved or disapproved the information contained in
this news release. For more information on the Company and the
risks inherent in its business, Investors should review the
Company's annual Form 40-F filing with the United States Securities
and Exchange Commission and its home jurisdiction filings that are
available at www.sedar.com. To view this news release in HTML
formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/March2011/16/c3272.html
p align="justify"For additional details on Great Basin and its gold
properties, please visit the Company's website at a
href="http://www.grtbasin.com"www.grtbasin.com/a or contact
Investor Services at:/p p align="justify"Tsholo Serunye in South
Africa +27 (0) 11 301 1800br/ Michael Curlook in
North America +1 (888) 633 9332br/ Barbara Cano at
Breakstone Group in the USA +1 (646) 452 2334/p
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